Buying your first home can be exciting, nerve-wrecking, and everything in between. Preparing and educating yourself before you get going into high gear can go a long way to alleviate any potential headaches now or 10 years down the road. Courtesy of CNN Money’s all-knowing housing market experts and real estate gurus, here’s a few helpful hints for you first time home buyers out there.

If you are considering buying a home for the first time, there are a few factors to take under consideration when deciding whether or not you are ready to buy a home.

Stability

Renters are subject to rate changes every year. As a homeowner with a fixed rate mortgage, you will pay the same monthly rate for the whole life of the loan. You also don’t have to depend on a landlord or management company to address repairs or problems with the property.

Owning a home can provide families and communities with more stability. Some studies suggest a connection between home ownership and higher graduation rates as well as lower crime rates.

Finances

Employment. Are you steadily employed? If you need a loan, will your employment history qualify you? Do you expect any changes in employment within the next couple years?

Credit. Is your credit good? Will you be able to afford the monthly payment with your new home?

Savings. Do you have enough savings for a down payment? Most loan types require a 20% down payment on the property. Do you have reserve emergency fund set aside? It’s a smart idea to have at least 6 months worth of reserve in the bank, enough to be able to cover all of your monthly expenses for each month.

Once you decide you’re ready, now is a perfect time to buy a home!

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